NextEra Energy to Acquire Dominion for $67 Billion, Creating Largest Utility Worldwide
NextEra Energy has announced a $67 billion acquisition of Dominion Energy, aiming to form the world's largest utility. This merger is intended to meet the growing electricity demand driven by the AI data center boom and will enhance NextEra's capacity to develop renewable energy and power solutions across the U.S.
NextEra Energy's acquisition of Dominion Energy, announced on May 18, is valued at $67 billion and represents the largest energy deal this century.
The merger will create the world's largest utility, with a combined enterprise value of $420 billion, making NextEra the biggest U.S. energy company by market capitalization.
NextEra's CEO, John Ketchum, stated that the acquisition is crucial for meeting the increasing demand for electricity, particularly from AI data centers and other sectors.
The combined companies will have a construction backlog of 130 gigawatts, enough to power approximately 100 million homes in the U.S.
The deal includes a 23% premium on Dominion's market cap as of May 15, and NextEra's stock fell nearly 5% following the announcement, while Dominion's stock rose by 9%.
NextEra aims to leverage its scale to develop data center hubs nationwide, emphasizing the need for affordable energy solutions to avoid backlash against AI development.
The all-stock transaction is expected to close in 2027, with NextEra shareholders holding about 74.5% of the new entity.
Ketchum will remain as chairman and CEO, while Dominion's CEO, Robert Blue, will lead the regulated utilities division. The combined company will have dual headquarters in Juno Beach, Florida, and Richmond, Virginia, serving around 10 million customer accounts.
NextEra plans to maintain an annual capital spending budget of $59 billion to support its growth and development initiatives.